Pilgrim’s Pride sets committee to examine buyout

GREELEY — Pilgrim’s Pride Corp. (Nasdaq: PPC) will review a buyout offer by 80% majority owner JBS SA; the Sao Paulo-headquartered global meat processor said in August it wanted to buy the rest of Pilgrim’s Pride for $26.50  per share in cash.

A JBS press release at the time it made the offer said the bid was a 22% premium on Pilgrim Pride’s trailing 30-day average.  

Shares in the local meat processor, which employs more than 3,000 here, traded recently above $28 a share at a $6.9 billion market cap.

SPONSORED CONTENT

Select your Republic Services residential cart now!

In preparation for Republic Services becoming the primary provider of residential recycling, yard trimmings, and trash, residents should now select the best cart size and service schedule for their household needs.

Pilgrim’s Pride board resolutions establishing the committee said holders with a majority of the 20% stake JBS doesn’t own would have to approve the deal, and that the full board won’t approve a deal without the special committee’s favorable recommendation.

The committee retained law firm Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel and Goldman Sachs & Co. LLC as financial advisor to help evaluate the proposal.

Pilgrim’s Pride employs 56,000 people in North America and Europe.

© BizWest Media LLC